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Channel Islands&#39 plan to offer captive PI for £3k

Cambridge-based IFA Group 300 is setting up a professional indemnity insurance scheme based in the Channel Islands.

The captive scheme will be offered to 200 firms initially – Group 300 members and a restricted number of firms which do not belong to the network. The company is aiming for FSA regulation in January.

Appointed representatives will pay a £3,000 flat fee and directly regulated firms will pay £6,000. All the firms covered will be using Group 300 online compliance tools.

The company is not planning to expand its scheme beyond more than a few hundred members but wants to market its online compliance tools across the sector.

Group 300 chief executive Chris Batten says: “Our partners in the scheme do already have some involvement with the IFA sector but are not currently PI players. One of the reasons that we are doing what we are doing is that I believe to a certain extent that many of the IFAs with a mutual do not understand that they are footing the risk of other policyholders.

“Those signed up to mutual schemes are effectively self-insuring. With our project, we will be able to monitor very closely the firms coming into our scheme.”

ABI spokeswoman Emma Grainge says: “Increasing competition in this area of the market is nothing but a good thing for customers – in this case, the IFAs.”

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